What is Energy Performance Contracting?
Energy performance contracting is an agreement between a building owner (or facilities manager) and a private energy services company (ESCO) that future operational cost savings (such as for annual: electricity, water, sewer or solid waste charges, as well as equipment maintenance service contracts) can be used to pay for the entire cost of a building’s energy and water efficiency retrofits (also known as energy conservation measures or ECMs). A building owner contracts with an ESCO to assist in getting 3rd party financing for mutually agreed upon ECMs and (after the 3rd party financing is secured by the building owner) the ESCO implements the mutually agreed upon ECMs under “design-build” work (which includes design, purchase, installation and construction of the ECMs).
Resources:
Hawaii Energy Performance Contracting (EPC) Statute
Guide to Energy Performance Contracting (2011)
Pre-Qualified Energy Service Companies (ESCO)
Our island environment is not only the basis for our quality of life, it is also the lifeblood of our economy. We look at environmental issues with future generations in mind, and as we explore Hawaii’s boundless, clean energy potential, we trust they will benefit from our stewardship.